Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing department. Information for the Cutting department for the month of May follows. Beginning work in process inventory Units started and completed Units completed and transferred out Ending work in process inventory Production cost information for the Cutting department follows: Beginning work in process Direct materials Conversion Costs added this period Direct materials Conversion $71,500 35,050 $348,040 341,280 Units 50,500 226,000 201,000 75,500 $ 106,550 689,320 Direct materials Percent Complete 100% 100% Conversion Percent in Complete 45% 15% A If Pitt Enterprises uses the FIFO method of process costing, compute the cost per equivalent unit for direct materials and conversion costs respectively for May.

answers:

1. $3.35; $3.35

2. $0.79; $3.85

3. $1.54; $1.80

4. $3.85; $0.70

5. $3.85; $3.85

Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing department. Information for the Cutting department for the month of May follows. Production cost information for the Cutting department follows: If Pitt Enterprises uses the FIFO method of process costing. compute the cost per equivalent unit for direct materials and conversion costs respectively for May